The National Institute of Statistics of Rwanda has announced that unemployment in Rwanda decreased by 2.5 percentage points in 2025, with the number of unemployed people estimated at 676,340, representing 12.4% of the labor force.
The figures are contained in the 2025 Labour Force Survey conducted by NISR, which assesses employment levels, unemployment rates, and the number of people outside the labor market.
According to the report, roughly one out of every eight people in the labor force in 2025 did not have a job.
In 2025, Rwanda’s working-age population defined as individuals aged 16 and above reached 8,542,210 people. Of these, about 5,449,044 were active in the labor market, representing 63.8% of the working-age population.
Among those participating in the labor market, 4,772,704 people were employed, accounting for 55.9% of the working-age population. This marks an increase compared to 53.5% recorded in 2024. Meanwhile, about 3,092,165 people, or 36.2%, were outside the labor force.
The report also highlights that men remain more active in the labor market than women, although the gap is narrowing. In 2024, the difference stood at 14.3%, but it dropped by 1.2 percentage points in 2025.
However, unemployment remains higher among women than men. In 2025, the unemployment rate among women stood at 14.2%, compared to 10.8% among men. Youth unemployment was recorded at 14.7%, while among adults it stood at 10.8%.
The gender gap in unemployment was estimated at 3.3%, reflecting a decline of 1.7 percentage points compared to 2024.
Interestingly, the unemployment rate in urban and rural areas was the same in 2025, both standing at 12%.
NISR also reported that the employment-to-population ratio (EPR) which measures the proportion of working-age people who are employed—increased to 55.9% in 2025, up from 53.5% in 2024.
Employment levels rose for both men and women. Among men, the employment rate increased by 1.4 percentage points to reach 63.6%, while among women it rose by 3.1 percentage points to 49%.
The services sector remained the largest employer, accounting for 44.4% of all jobs in 2025, up from 42.9% in 2024. Meanwhile, employment levels in agriculture and industry remained largely unchanged compared to the previous year.
Despite these improvements, the report indicates that about 56% of working-age individuals are not fully utilizing their potential in the labor market. This includes people who are unemployed, those working fewer hours than they would like, or individuals employed in jobs that require lower skills than those they possess.
The issue is more prevalent among women, with 63.1% not fully utilizing their potential, compared to 48.5% of men. Among youth, 56.7% are considered underutilized, while the figure among adults stands at 55.5%.
However, the overall level of labor underutilization declined slightly by 1.8 percentage points between 2024 and 2025.
Over the past five years, Rwanda has recorded a steady decline in unemployment. The rate dropped from 21.1% in 2021 to 20.5% in 2022, before falling to 17.2% in 2023. It further decreased to 14.9% in 2024 and reached 12.4% in 2025.
At the same time, employment levels have steadily increased over the same period. The employment rate rose from 42.6% in 2021 to 44.5% in 2022, then to 49% in 2023. It further increased to 53.5% in 2024 and reached 55.9% in 2025.